Trading Symbol TSX:ARU
TORONTO, July 17 /CNW/ - Aurelian Resources Inc. (TSX:ARU) today
announced results of metallurgical testing for the Fruta del Norte (FDN)
gold-silver deposit. The results are a significant improvement over earlier
tests reported as part of the initial FDN resource estimate in October 2007
and provide more options to enhance the project development and operation.
"The recent metallurgical testing has provided even better results than
anticipated," says George Bee, Chief Operating Officer. "We received higher
gravity recoveries, which were expected given the large amount of visible gold
in FDN core. In addition, the new results offer greater flexibility in plant
design, since more than 50% of the anticipated mill feed will not need any
pre-oxidation treatment prior to leaching, whereas the initial studies assumed
that 100% would require oxidation. This should result in reduced capital
investment and lower process costs for FDN."
Patrick Anderson, President and CEO comments, "Our engineering team has
been making good progress with the Conceptual Development Plan for FDN. Once
we have more clarity regarding the fiscal and regulatory landscape in Ecuador,
we'll be well-positioned to reinitiate work in the field focusing on the fast
track development of the project. The draft mining law continues to navigate
the required approvals in the Ecuadorian government and is currently with
President Correa and his advisors."
Metallurgical test work was initiated in April 2008 at G&T Metallurgical
Services Ltd. of Kamloops, British Columbia, on 1,200 kg of whole core drill
samples obtained from dedicated metallurgical test holes at FDN. The samples
represent the four geologically distinct zones of the FDN deposit within the
Phase 1 development area slated for initial production. As anticipated, the
larger, more representative samples revealed a weighted average gravity
recovery of 34%, an improvement of 25% from the earlier test program results
on smaller samples.
Test work shows that crushing, grinding and gravity recovery with Carbon
in Leach (CIL or leaching), "were quite favourable, especially for Zone 3 and
4." A gravity concentration plus flotation, followed by leaching of flotation
tailings "indicate that for Zones 1, 2 & 4, a combined gold recovery of 91, 88
and 95 percent was possible." It is important to note that gold recovered to
the gravity and flotation concentrates will require further processing to
yield final doré. Some gold losses are expected through these processes and
the magnitude of these losses will be determined in the ongoing test program.
While it is early days and further test work and plant design needs to be
completed, these results, coupled with the ability to selectively mine FDN,
offer the opportunity to optimize the project. A summary report of the
metallurgical results entitled "Technical Brief on Phase 1 Metallurgical
Testing" is available on the company's web site at www.aurelian.ca. All quotes
in this paragraph are from the summary report.
While exploration and development activities in Ecuador have been
suspended for six months by the previously announced Mining Mandate of April
18, 2008, the Company is forging ahead with its Conceptual Development Plan
for FDN. The various elements of the Plan, including mine planning, process
design and assessment, and capital cost estimation are almost complete.
Release of the Plan will await finalization of the new mining law since inputs
from the law are required for economic calculations.
The Conceptual Development Plan purposely goes beyond a typical
conceptual development level, with the intent of fast-tracking development of
the Phase 1A portion of the FDN project. Phase 1A refers to around 300 metres
of strike length of the FDN deposit which contains approximately half of the
previously announced resource of 13.7 million ounces of gold (58.9 million
tonnes grading 7.23 g/t gold) in approximately 11 million tons. Targeting the
high-grade portion of the FDN ore body at the beginning of the mine life is
particularly appropriate given that it is the most accessible and starts only
150 meters below surface.
John Wells (Fellow, South African Institute of Mining & Metallurgy) of
JawMetc, a consultant to Aurelian, is acting as the in-house Qualified Person
(QP) in compliance with National Instrument 43-101 with respect to QA-QC
issues in this release. John Folinsbee (P.Eng.) of G&T Metallurgical Services
is the independent QP responsible for the metallurgy. They have reviewed the
contents of this release for accuracy.
Aurelian Resources Inc. is a publicly-listed (TSX:ARU) company engaged in
exploring, discovering and developing mineral wealth in Ecuador. The Fruta del
Norte (FDN) discovery lies at the heart of the Condor Project, located in
south-eastern Ecuador. The initial Inferred Resource for FDN was released in
October 2007 and included 58.9 million tonnes grading 7.23 g/t gold and 11.8
g/t silver for 13.7 million ounces of contained gold and 22.4 million ounces
of contained silver (Report titled "A Mineral Resource Estimate for the Fruta
del Norte Deposit, Cordillera del Condor Project, Zamora-Chinchipe Province,
Ecuador" and dated November 15, 2007 filed on www.sedar.com). Aurelian is
committed to working with the government and people of Ecuador to achieve a
modern, sustainable mining industry, which will play an important role in the
future growth of the country. Visit www.aurelian.ca for more information.
Forward Looking Statement
Some of the statements contained herein may be forward-looking statements
which involve known and unknown risks and uncertainties. Without limitation,
statements regarding future political events, potential mineralisation,
metallurgy and resources, exploration results, and future plans and objectives
of the Company are forward looking statements that involve various degrees of
risk and may not be within the control of the Company. The following are
important factors that could cause the Company's actual results to differ
materially from those expressed or implied by such forward looking statements:
changes in the world wide price of mineral commodities, general market
conditions, risks inherent in mineral exploration, risks associated with
development, construction and mining operations, the uncertainty of future
profitability, the uncertainty of access to additional capital, and political
risks in Ecuador.
For further information:
For further information: George Bee, Chief Operating Officer, Phone:
(416) 868-9100, Email: email@example.com; Marla Gale, Investor Relations,
Phone: (416) 868-9100, Email: firstname.lastname@example.org